For the period ended April 30, 2017

Transcription

1 For the period ended April 30, 2017 (UNAUDITED) For further information, please contact: Dave Mun SVP, Performance Management & Investor Relations (416) Stephanie Phillips Senior Director, Investor Relations (416) Asim Imran Senior Director, Investor Relations (416) Brendon Buckler Director, Investor Relations (416)

2 Table of Contents Page Page 1 Notes to Users Capital (continued) 29 Leverage ratio 2 Financial Highlights 30 Leverage ratio common disclosure template Consolidated Results Credit Quality 5 Statements of income 31 Loans and acceptances 6 Revenue from trading activities 32 Gross impaired loans 7 Non-interest expense 35 Provision for credit losses 36 Allowance for credit losses Segment Details 38 Credit quality ratios 8 Personal & Commercial Banking 9 Canadian Banking Credit Risk Exposure 10 Wealth Management 39 Gross credit risk exposure by geography and portfolio 11 Insurance 40 Reconciliation of gross credit risk exposure to balance sheet 12 Investor & Treasury Services 41 Exposure covered by credit risk mitigation 13 Capital Markets 41 Credit exposure by residual contractual maturity 14 Corporate Support 42 Credit exposure of portfolios under the standardized approach by risk weight On- and Off-Balance Sheet 42 Actual losses vs. estimated losses 15 Balance sheets (period-end balances) 42 Basel Pillar 3 back-testing (Internal ratings based) 16 Selected average balance sheet items 43 Credit quality of internal ratings based (IRB) exposure - 16 Assets under administration and management retail portfolios by portfolio and risk rating 16 Statements of comprehensive income 44 Credit quality of advanced internal ratings based (AIRB) exposure - 17 Statements of changes in equity wholesale loans and acceptances by portfolio and risk rating 18 Securitization 45 Realized gains and losses on available-for-sale securities 45 Trading credit derivatives Capital 45 Other than trading credit derivatives positions 21 Basel lll regulatory capital and ratios (all-in basis) 46 Fair value of derivative instruments 23 Regulatory capital balance sheet 46 Derivatives - Notional amounts 25 Flow statement of the movements in regulatory capital 47 Derivatives - Related credit risk 26 Total capital risk-weighted assets 48 Market risk regulatory capital - Internal models-based approach VaR 27 Market Risk - Risk-weighted assets by approach (all-in basis) 28 Total capital risk-weighted assets by business segments (all-in basis) 49 Calculation of ROE and RORC 28 Movement of total capital risk-weighted assets by risk type (all-in basis) 50 Key performance and Non-GAAP measures 28 Attributed capital 50 Glossary (i)

3 Notes to Users The Consolidated Financial Statements are prepared in compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), International Accounting Standard (IAS) 34, Interim Financial Reporting unless otherwise noted. Unless otherwise stated, monetary amounts are stated in Canadian dollars. This document is not audited and should be read in conjunction with our Q Report to Shareholders and our 2016 Annual Report. Certain comparative amounts have been amended to conform to the current period's presentation. Capital Disclosure Requirements related to Basel III Pillar 3 Capital main features disclosure provides a qualitative disclosure and sets out summary information on the terms and conditions of the main features of all capital instruments. We have also included the full terms and conditions for each of our capital instruments on our Investor Relations website at EDTF Disclosures The Financial Stability Board's Enhanced Disclosure Task Force (EDTF) issued a report titled "Enhancing the Risk Disclosures of Banks " in October The following index lists the disclosure related to these recommendations contained in this document. Type of Risk Recommendation Disclosure Page Capital adequacy and risk-weighted assets 10 Composition of capital and reconciliation of the accounting balance sheet to the regulatory balance sheet 11 Flow statement of the movements in regulatory capital Risk-weighted assets (RWA) by business segments Analysis of capital requirement, and related measurement model information 15 RWA credit risk and related risk measurements Movement of risk-weighted assets by risk type Basel Pillar 3 back-testing 42 Credit risk 26 Bank's credit risk profile Reconciliation of gross credit risk exposure to balance sheet Reconciliation of the opening and closing balances of 33, 37 impaired loans and impairment allowances during the year 29 Quantification of gross notional exposure for OTC 46 derivatives or exchange-traded derivatives 30 Credit risk mitigation, including collateral held for all 41 sources of credit risk For a full index of where to find all EDTF related disclosures, see p. 54 of our Q Report to Shareholders. -1-

4 FINANCIAL HIGHLIGHTS Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except otherwise noted) 6 months 6 months SELECTED INCOME STATEMENT INFORMATION Net interest income 4,198 4,324 4,187 4,123 4,025 4,196 3,800 3,783 3,557 8,522 8,221 16,531 14,771 Non-interest income 6,112 5,222 5,078 6,132 5,501 5,163 4,219 5,045 5,273 11,334 10,664 21,874 20,550 Total revenue 10,310 9,546 9,265 10,255 9,526 9,359 8,019 8,828 8,830 19,856 18,885 38,405 35,321 Provision for credit losses (PCL) ,546 1,097 Insurance policyholder benefits, claims and acquisition expense 1, , ,273 1,817 3,424 2,963 Non-interest expense (NIE) 5,229 5,215 5,198 5,091 4,887 4,960 4,647 4,635 4,736 10,444 9,847 20,136 18,638 Net income 2,809 3,027 2,543 2,895 2,573 2,447 2,593 2,475 2,502 5,836 5,020 10,458 10,026 Less: Non-controlling interest (8) (12) (10) (9) (13) (21) (24) (26) (29) (20) (34) (53) (101) Preferred dividends (77) (75) (75) (85) (74) (60) (54) (50) (47) (152) (134) (294) (191) Net income available to common shareholders 2,724 2,940 2,458 2,801 2,486 2,366 2,515 2,399 2,426 5,664 4,852 10,111 9,734 Add: Dilutive impact of exchangeable shares Net income available to common shareholders including dilutive impact of exchangeable shares 2,727 2,944 2,462 2,805 2,489 2,370 2,519 2,403 2,429 5,671 4,859 10,126 9,749 PROFITABILITY MEASURES Earnings per share (EPS) - basic $1.86 $1.98 $1.66 $1.88 $1.67 $1.59 $1.74 $1.66 $1.68 $3.84 $3.26 $6.80 $ diluted $1.85 $1.97 $1.65 $1.88 $1.66 $1.58 $1.74 $1.66 $1.68 $3.82 $3.25 $6.78 $6.73 Common shares outstanding (000s) 1 - average (basic) 1,468,015 1,484,262 1,483,869 1,485,915 1,487,346 1,486,560 1,443,992 1,443,052 1,442,078 1,476,273 1,486,871 1,485,876 1,442,935 - average (diluted) 1,475,562 1,492,350 1,491,872 1,494,126 1,495,609 1,495,035 1,450,405 1,449,540 1,448,651 1,484,332 1,495,245 1,494,137 1,449,509 Return on common equity (ROE) % 18.0% 15.5% 18.0% 16.2% 15.3% 17.9% 18.1% 19.3% 17.7% 15.8% 16.3% 18.6% Return on assets 0.98 % 1.02% 0.86% 0.97% 0.90% 0.83% 0.94% 0.94% 0.99% 1.00% 0.86% 0.89% 0.95% Return on RWA % 2.71% 2.26% 2.60% 2.41% 2.12% 2.50% 2.34% 2.59% 2.58% 2.26% 2.34% 2.45% Efficiency ratio 50.7 % 54.6% 56.1% 49.6% 51.3% 53.0% 57.9% 52.5% 53.6% 52.6% 52.1 % 52.4% 52.8 % Adjusted efficiency ratio % 53.1% 55.1% 54.0% 52.5% 53.2% 54.8% 52.3% 52.5% 52.9% 52.9 % 53.7% 52.9 % KEY RATIOS Diluted EPS growth % 24.7 % (5.2)% 13.3 % (1.2)% (4.2)% 10.8 % 4.4 % 14.3 % 17.5 % (2.4)% 0.7 % 12.2% Revenue growth % 2.0 % 15.5 % 16.2 % 7.9 % (3.0)% (4.3)% (1.8)% 6.7 % 5.1 % 2.2 % 8.7 % 3.6% Adjusted revenue growth 4, % 5.3 % 11.3 % 6.3 % 3.1 % 5.1 % 1.7 % 1.5 % 9.3 % 6.1 % 3.5 % 6.4 % 4.7% NIE growth % 5.1 % 11.9 % 9.8 % 3.2 % 7.4 % 7.1 % 0.7 % 9.3 % 6.1 % 5.2 % 8.0 % 5.5% Adjusted NIE growth 4, % 5.1 % 11.9 % 9.8 % 3.2 % 7.4 % 7.1 % 1.6 % 9.3 % 6.1 % 5.2 % 8.0 % 6.4 % Operating leverage 1.2 % (3.1)% 3.6 % 6.4 % 4.7 % (10.4)% (11.4)% (2.5)% (2.6)% (1.0)% (3.0)% 0.7 % (1.9)% Adjusted operating leverage 4 (0.1)% 0.2 % (0.6)% (3.5)% (0.1)% (2.3)% (5.4)% (0.1)% 0.0 % 0.0 % (1.7)% (1.6)% (1.7)% PCL on impaired loans as a % of Average net loans and acceptances 0.23 % 0.22 % 0.27 % 0.24 % 0.32 % 0.31 % 0.23 % 0.23 % 0.25 % 0.22 % 0.31 % 0.28 % 0.24% Net interest margin (on average earning assets) 1.73 % 1.73 % 1.70 % 1.69 % 1.70 % 1.71 % 1.67 % 1.72 % 1.71 % 1.73 % 1.71 % 1.70 % 1.71% Net interest margin (total average assets) 1.46 % 1.45 % 1.42 % 1.38 % 1.40 % 1.42 % 1.38 % 1.44 % 1.41 % 1.46 % 1.41 % 1.41 % 1.40% Net interest margin (total average assets) excluding Trading Assets, Trading NII and Insurance Assets 2.01 % 2.02 % 2.04 % 2.03 % 2.02 % 2.04 % 2.00 % 2.07 % 2.07 % 2.01 % 2.03 % 2.03 % 2.07% Non-interest income as % of total revenue 59.3 % 54.7 % 54.8 % 59.8 % 57.7 % 55.2 % 52.6 % 57.1 % 59.7 % 57.1 % 56.5 % 57.0 % 58.2% Effective tax rate 23.9 % 21.5 % 23.2 % 20.4 % 19.4 % 22.6 % 7.6 % 24.2 % 24.6 % 22.6 % 21.0 % 21.4 % 20.6% Effective tax rate (teb) 25.8 % 23.8 % 25.8 % 25.8 % 24.2 % 26.1 % 14.1 % 27.2 % 27.1 % 24.8 % 25.1 % 25.5 % 24.0% CAPITAL MEASURES - CONSOLIDATED Common Equity Tier 1 capital ratio (CET1) % 11.0% 10.8% 10.5% 10.3% 9.9% 10.6% 10.1% 10.0% 10.6% 10.3% 10.8% 10.6% Tier 1 capital ratio % 12.6% 12.3% 12.1% 11.9% 11.3% 12.2% 11.7% 11.6% 12.0% 11.9% 12.3% 12.2% Total capital ratio % 14.7% 14.4% 14.2% 14.0% 13.4% 14.0% 13.4% 13.5% 14.1% 14.0% 14.4% 14.0% Total capital risk-weighted assets ($ billions) Leverage ratio - all-in basis 4.3% 4.4% 4.4% 4.2% 4.2% 4.0% 4.3% 4.2% 4.0% 4.3% 4.2% 4.4% 4.3% Leverage ratio exposure - all-in basis ($ billions) 1, , , , , , , , , , , , , Average common shares outstanding includes the impact of treasury shares held. 2 This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-gaap measures section on page Different scalars are applied to the Credit valuation adjustment (CVA) included in the risk weighted asset calculation applicable to each of the three tiers of capital. This phase-in approach of CVA ends in Q4/18. During this phase-in period, RWA for Common Equity Tier 1 (CET1), Tier 1 capital and Total capital ratios will be subject to different annual CVA percentages and 2016 CVA scalars are 64%, 71% and 77%. For 2017 the CVA scalers are 72%, 77% and 81%. 4 These measures have been adjusted to exclude the change in fair value backing out policyholder liabilities and the following specified items (pre-tax): Gain on sale of U.S. operations of Moneris Solutions (Q1/17 - $212 million), Gain on sale of RBC General Insurance (Q3/16 - $287 million), Cumulative translation adjustment release (Q2/15 - $108 million), Loss on sale of RBC Jamaica (Q4/14 - $40 million, Q1/14 - $60 million) and Caribbean provision related to post-employment benefits and restructuring charges (Q1/14 - $40 million). These are non-gaap measures. Refer to page 50 for further details. 5 Growth rates are calculated based on earnings in the same period a year ago. -2-

5 FINANCIAL HIGHLIGHTS continued Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except otherwise noted) 6 months 6 months ADJUSTED BASIS MEASURES 1 Net income available to common shareholders 2,724 2,940 2,458 2,801 2,486 2,366 2,515 2,399 2,426 5,664 4,852 10,111 9,734 Adjustments Add: After-tax effect of amortization of other intangibles Cumulative translation adjustment release (108) (108) City National transaction and integration costs Gain on sale of RBC General Insurance (235) (235) - Gain on sale of U.S. operations of Moneris Solutions Corporation - (212) (212) ,780 2,790 2,520 2,629 2,551 2,445 2,564 2,427 2,355 5,570 4,996 10,145 9,780 Add: Dilutive impact of exchangeable shares Net income available to common shareholders including dilutive impact of exchangeable shares 2,783 2,794 2,524 2,633 2,554 2,449 2,568 2,431 2,358 5,577 5,003 10,160 9,795 Adjusted EPS $1.89 $1.88 $1.70 $1.77 $1.72 $1.64 $1.78 $1.68 $1.63 $3.77 $3.36 $6.83 $6.78 Adjusted diluted EPS $1.89 $1.87 $1.69 $1.76 $1.71 $1.64 $1.77 $1.68 $1.63 $3.76 $3.35 $6.80 $6.76 Adjusted ROE 17.6% 17.1% 15.9% 16.9% 16.6% 15.8% 18.2% 18.3% 18.8% 17.4% 16.2% 16.3% 18.7% ECONOMIC PROFIT Net income 2,809 3,027 2,543 2,895 2,573 2,447 2,593 2,475 2,502 5,836 5,020 10,458 10,026 Non-controlling interests (8) (12) (10) (9) (13) (21) (24) (26) (29) (20) (34) (53) (101) After-tax effect of amortization of other intangibles Goodwill and other intangibles impairment Capital charge (1,420) (1,460) (1,503) (1,484) (1,455) (1,451) (1,319) (1,244) (1,176) (2,880) (2,906) (5,893) (4,896) Economic profit 3 1,432 1,611 1,083 1,453 1,157 1,031 1,276 1,232 1,331 3,043 2,188 4,724 5,146 ADDITIONAL SHARE INFORMATION Common shares outstanding (000s) - end of period 1,457,291 1,475,540 1,485,394 1,485,085 1,488,219 1,486,631 1,443,423 1,443,192 1,443,102 1,457,291 1,488,219 1,485,394 1,443,423 Treasury shares held - preferred (000s) (24) (18) 5 (17) (63) (6) 71 (24) 5 31 (63) - common (000s) (227) (515) (1,159) (1,473) (1,324) 1, (1,357) (227) (1,324) (1,159) 532 Stock options outstanding (000s) 4 10,612 11,382 11,388 12,595 13,176 14,797 8,182 8,414 8,504 10,612 13,176 11,388 8,182 Stock options exercisable (000s) 5,595 6,209 6,909 8,085 8,718 10,188 5,231 5,463 5,553 5,595 8,718 6,909 5,231 Dividends declared per common share $0.87 $0.83 $0.83 $0.81 $0.81 $0.79 $0.79 $0.77 $0.77 $1.70 $1.60 $3.24 $3.08 Dividend yield 3.6% 3.8% 4.0% 4.1% 4.5% 4.4% 4.3% 4.0% 4.0% 3.7% 4.5% 4.3% 4.1% Dividend payout ratio 47% 42% 50% 43% 49% 50% 45% 46% 46% 44% 49% 48% 46% Common dividends 1,271 1,232 1,234 1,202 1,206 1,175 1,141 1,110 1,111 2,503 2,381 4,817 4,443 Preferred dividends Book value per share $45.20 $43.97 $43.32 $42.15 $40.91 $42.42 $39.51 $38.20 $35.91 $45.20 $40.91 $43.32 $39.51 Common share price (RY on TSX) - High $99.90 $94.90 $84.70 $80.97 $78.93 $77.67 $77.60 $80.85 $81.53 $99.90 $78.93 $84.70 $ Low $93.11 $81.82 $78.24 $74.64 $64.52 $64.95 $68.05 $72.98 $72.16 $81.82 $64.52 $64.52 $ Close, end of period $93.47 $93.56 $83.80 $79.59 $77.92 $72.55 $74.77 $76.26 $80.11 $93.47 $77.92 $83.80 $74.77 Market capitalization (TSX) 136, , , , , , , , , , , , ,925 Market price to book value Adjusted measures are non-gaap measures. For further information, refer to the Key performance and non-gaap measures section on page Q2/15 includes $4 million related to the impairment of other intangibles. 3 This is a non-gaap measure. For further information, refer to the Key performance and non-gaap measures section on page Effective Q1/16, includes share-based compensation awards from our acquisition of City National. -3-

6 FINANCIAL HIGHLIGHTS continued Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except otherwise noted) 6 months 6 months SELECTED BALANCE SHEET INFORMATION Average loans and acceptances 540, , , , , , , , , , , , ,600 Total assets 1,202,919 1,161,766 1,180,258 1,198,875 1,150,357 1,200,352 1,074,208 1,085,173 1,032,172 1,202,919 1,150,357 1,180,258 1,074,208 Average assets 1,181,000 1,180,800 1,175,400 1,184,300 1,166,500 1,179,300 1,096,100 1,043,900 1,038,000 1,180,900 1,172,900 1,176,400 1,052,800 Average earning assets 997, , , , , , , , , , , , ,800 Deposits 785, , , , , , , , , , , , ,227 Common equity 65,858 64,853 64,304 62,541 60,825 63,111 57,048 55,153 51,779 65,858 60,825 64,304 57,048 Average common equity 64,800 64,650 63,100 61,800 62,400 61,450 55,800 52,600 51,500 64,700 61,950 62,200 52,300 OTHER INFORMATION Number of employees (full-time equivalent) Canada 52,906 52,859 52,898 54,124 53,786 53,668 53,730 54,507 53,509 52,906 53,786 52,898 53,730 US 11,947 11,896 11,824 11,861 11,509 11,494 7,769 7,894 7,675 11,947 11,509 11,824 7,769 Other 10,428 10,704 10,788 10,956 11,005 11,218 11,340 11,813 11,952 10,428 11,005 10,788 11,340 Total 75,281 75,459 75,510 76,941 76,300 76,380 72,839 74,214 73,136 75,281 76,300 75,510 72,839 Number of banking branches Canada 1,256 1,265 1,268 1,271 1,274 1,276 1,275 1,273 1,273 1,256 1,274 1,268 1,275 US Other Total 1,401 1,415 1,419 1,422 1,427 1,430 1,355 1,354 1,361 1,401 1,427 1,419 1,355 Number of automated teller machines (ATMs) 4,893 4,902 4,905 4,901 4,898 4,900 4,816 4,892 4,913 4,893 4,898 4,905 4,816 Active digital (Online and Mobile) users (000's) 1 6,021 5,908 5,806 5,694 5,607 5,524 5,442 5,349 n.a. 6,021 5,607 5,806 5,442 Active mobile users (000's) 1 2,981 2,886 2,772 2,617 2,463 2,379 2,267 2,141 n.a. 2,981 2,463 2,772 2,267 MARKET RISK MEASURES - Structural Interest Rate Sensitivities Before-tax impact of 1% increase in rates on: Net interest income risk Economic value of equity (1,208) (1,304) (1,377) (1,187) (1,192) (1,286) (1,072) (893) (877) (1,208) (1,192) (1,377) (1,072) Before-tax impact of 1% decrease in rates on: Net interest income risk 2 (577) (553) (465) (450) (450) (457) (370) (319) (353) (577) (450) (465) (370) Economic value of equity This figure represents the 90-Day Active customers in Canadian Banking only. 2 Amounts represent the 12-month Net interest exposure to an instantaneous and sustained shift in interest rates. n.a. - not available -4-

7 STATEMENTS OF INCOME Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars) 6 months 6 months Net interest income Interest income 6,491 6,459 6,211 6,184 6,001 6,056 5,715 5,755 5,557 12,950 12,057 24,452 22,729 Interest expense 2,293 2,135 2,024 2,061 1,976 1,860 1,915 1,972 2,000 4,428 3,836 7,921 7,958 Total 4,198 4,324 4,187 4,123 4,025 4,196 3,800 3,783 3,557 8,522 8,221 16,531 14,771 Non-interest income Accounts ,284 1,193 Other payment services Service charges ,756 1,592 Insurance premiums, investment and fee income 1, ,534 1,351 1, , ,945 2,510 4,868 4,436 Trading revenue (203) Investment management and custodial fees 1,158 1,128 1,102 1,053 1,031 1, ,286 2,085 4,240 3,778 Mutual fund revenue ,494 1,414 2,887 2,881 Securities brokerage commissions ,429 1,436 Underwriting and other advisory fees , ,876 1,885 Foreign exchange revenue, other than trading Card service revenue Credit fees ,239 1,184 Net gain (loss) on available-for-sale securities Share of profit (loss) in joint ventures and associates Other Total 6,112 5,222 5,078 6,132 5,501 5,163 4,219 5,045 5,273 11,334 10,664 21,874 20,550 Total revenue 10,310 9,546 9,265 10,255 9,526 9,359 8,019 8,828 8,830 19,856 18,885 38,405 35,321 Provision for credit losses ,546 1,097 Insurance policyholder benefits, claims and acquisition expense 1, , ,273 1,817 3,424 2,963 Non-interest expense 5,229 5,215 5,198 5,091 4,887 4,960 4,647 4,635 4,736 10,444 9,847 20,136 18,638 Income before income taxes 3,689 3,854 3,312 3,636 3,191 3,160 2,805 3,267 3,319 7,543 6,351 13,299 12,623 Income taxes ,707 1,331 2,841 2,597 Net income 2,809 3,027 2,543 2,895 2,573 2,447 2,593 2,475 2,502 5,836 5,020 10,458 10,026 Net income (loss) attributable to: Shareholders 2,801 3,015 2,533 2,886 2,560 2,426 2,569 2,449 2,473 5,816 4,986 10,405 9,925 Non-controlling interests (NCI) Net income 2,809 3,027 2,543 2,895 2,573 2,447 2,593 2,475 2,502 5,836 5,020 10,458 10,026 Net income 2,809 3,027 2,543 2,895 2,573 2,447 2,593 2,475 2,502 5,836 5,020 10,458 10,026 Non-controlling interests (8) (12) (10) (9) (13) (21) (24) (26) (29) (20) (34) (53) (101) Preferred dividends (77) (75) (75) (85) (74) (60) (54) (50) (47) (152) (134) (294) (191) Net income available to common shareholders 2,724 2,940 2,458 2,801 2,486 2,366 2,515 2,399 2,426 5,664 4,852 10,111 9,734-5-

8 REVENUE FROM TRADING ACTIVITIES Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars) 6 months 6 months Total trading revenue Net interest income ,300 1,235 2,376 2,398 Non-interest income (203) Total ,744 1,506 3,077 2,950 Trading revenue by product Interest rate and credit , ,830 1,400 Equities ,045 Foreign exchange and commodities Total ,744 1,506 3,077 2,950 Trading revenue (teb) by product Interest rate and credit , ,830 1,400 Equities ,166 1,614 Foreign exchange and commodities Total (teb) 898 1, ,068 1,923 1,804 3,560 3,518 Trading revenue (teb) by product - Capital Markets Interest rate and credit ,473 1,238 Equities ,205 1,590 Foreign exchange and commodities Total (teb) ,648 1,637 3,080 3,204 Trading revenue (teb) - Investor & Treasury Services (26)

9 NON-INTEREST EXPENSE Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars) 6 months 6 months Human resources Salaries 1,449 1,441 1,466 1,462 1,445 1,492 1,348 1,309 1,273 2,890 2,937 5,865 5,197 Variable compensation 1,229 1,215 1,158 1,129 1,046 1, ,133 1,264 2,444 2,120 4,407 4,533 Benefits and retention compensation ,674 1,607 Stock-based compensation Total Human resources 3,241 3,263 3,032 3,079 3,014 3,076 2,682 2,890 2,996 6,504 6,090 12,201 11,583 Equipment Depreciation Computer rental and maintenance ,176 1,041 Office equipment rental and maintenance Total Equipment ,438 1,277 Occupancy Premises rent Premises repairs and maintenance Depreciation Property taxes Total Occupancy ,568 1,410 Communications Telecommunications Postage and courier Marketing and public relations Stationery and printing Total Communications Professional fees , Amortization of other intangibles Computer software Other Total Amortization of other intangibles Other Business and capital taxes Travel and relocation Employee training Donations Outsourced item processing Impairment of other intangibles (1) Impairment of investments in joint ventures and associates 1 1 (23) (17) (8) 3 Other ,249 1,165 Total Other ,936 1,836 Total non-interest expense 5,229 5,215 5,198 5,091 4,887 4,960 4,647 4,635 4,736 10,444 9,847 20,136 18,638 1 Stock-based compensation includes the cost of stock options, performance deferred shares, deferred compensation plans and the impact of related economic hedges. -7-

10 PERSONAL & COMMERCIAL BANKING Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except percentage amounts) 6 months 6 months Income Statement Net interest income 2,597 2,649 2,640 2,598 2,527 2,572 2,569 2,543 2,399 5,246 5,099 10,337 10,004 Non-interest income 1,153 1,381 1,144 1,137 1,107 1,111 1,080 1,083 1,073 2,534 2,218 4,499 4,309 Total revenue 3,750 4,030 3,784 3,735 3,634 3,683 3,649 3,626 3,472 7,780 7,317 14,836 14,313 Provision for credit losses (PCL) , Non-interest expense 1,661 1,723 1,780 1,687 1,614 1,676 1,717 1,648 1,618 3,384 3,290 6,757 6,611 Income taxes ,773 1,712 Net income 1,360 1,592 1,275 1,322 1,297 1,290 1,270 1,281 1,200 2,952 2,587 5,184 5,006 Total revenue by business Personal Financial Services 1,966 2,015 1,997 1,973 1,908 1,932 1,956 1,949 1,843 3,981 3,840 7,810 7,634 Business Financial Services ,632 1,565 3,190 3,091 Cards and Payment Solutions ,675 1,397 2,833 2,654 Canadian Banking 3,510 3,778 3,532 3,499 3,380 3,422 3,409 3,390 3,244 7,288 6,802 13,833 13,379 Caribbean & U.S. Banking , Total 3,750 4,030 3,784 3,735 3,634 3,683 3,649 3,626 3,472 7,780 7,317 14,836 14,313 Financial ratios Return on equity (ROE) % 32.1 % 27.1 % 28.0 % 27.8 % 26.9 % 29.1 % 30.3 % 29.7 % 30.1 % 27.3 % 27.5 % 30.0 % Net interest margin (average earning assets) 2.67 % 2.66 % 2.69 % 2.68 % 2.69 % 2.68 % 2.70 % 2.72 % 2.70 % 2.66 % 2.68 % 2.68 % 2.71 % Efficiency ratio 44.3 % 42.8 % 47.0 % 45.2 % 44.4 % 45.5 % 47.1 % 45.4 % 46.6 % 43.5 % 45.0 % 45.5 % 46.2 % Operating leverage 0.3 % 6.6 % 0.0 % 0.6 % 4.9 % 0.4 % 1.0 % 3.8 % 2.1 % 3.4 % 2.6 % 1.5 % 3.5 % Average balances Total assets 417, , , , , , , , , , , , ,100 Total earning assets 398, , , , , , , , , , , , ,000 Loans and acceptances 398, , , , , , , , , , , , ,500 Deposits 342, , , , , , , , , , , , ,600 Attributed capital 19,550 19,350 18,350 18,400 18,600 18,750 17,050 16,550 16,300 19,450 18,700 18,550 16,500 Risk capital 14,850 14,650 13,600 13,700 13,800 13,850 12,150 11,750 11,450 14,750 13,850 13,750 11,650 Credit quality Gross impaired loans / Average net loans and acceptances 0.39 % 0.39 % 0.42 % 0.43 % 0.45 % 0.48 % 0.48 % 0.52 % 0.52 % 0.39 % 0.45 % 0.43 % 0.49 % PCL on impaired loans / Average net loans and acceptances 0.27 % 0.25 % 0.29 % 0.28 % 0.30 % 0.30 % 0.25 % 0.28 % 0.26 % 0.26 % 0.30 % 0.29 % 0.27 % Net write-offs / Average net loans and acceptances 0.27 % 0.25 % 0.28 % 0.30 % 0.29 % 0.26 % 0.29 % 0.28 % 0.27 % 0.26 % 0.27 % 0.28 % 0.28 % Business information Assets under administration 2 258, , , , , , , , , , , , ,500 Assets under management 4,800 4,500 4,600 4,400 4,400 4,700 4,800 4,700 4,400 4,800 4,400 4,600 4,800 Other earnings measures Net income 1,360 1,592 1,275 1,322 1,297 1,290 1,270 1,281 1,200 2,952 2,587 5,184 5,006 Non-controlling interests 1 (3) (1) (1) (4) (2) (2) (1) (5) (2) (6) (8) (8) Add: After-tax effect of amortization of other intangibles Adjusted net income 1,364 1,592 1,277 1,325 1,295 1,291 1,271 1,284 1,203 2,956 2,586 5,188 5,020 Less: Capital charge ,756 1,544 Economic profit , ,090 1,710 3,432 3,476 1 This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-gaap measures section on page AUA represents period-end spot balances and includes securitized residential mortgages and credit card loans as at April 30, 2017 of $18.9 billion and $9.8 billion, respectively (January 31, $18.7 billion and $8.4 billion; April 30, $19.8 billion and $9.9 billion). 3 This is a non-gaap measure. For further information, refer to the Key performance and non-gaap measures section on page

11 CANADIAN BANKING Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except percentage amounts) 6 months 6 months Income Statement Net interest income 2,435 2,488 2,471 2,442 2,367 2,403 2,407 2,381 2,248 4,923 4,770 9,683 9,377 Non-interest income 1,075 1,290 1,061 1,057 1,013 1,019 1,002 1, ,365 2,032 4,150 4,002 Total revenue 3,510 3,778 3,532 3,499 3,380 3,422 3,409 3,390 3,244 7,288 6,802 13,833 13,379 Provision for credit losses (PCL) , Non-interest expense 1,479 1,514 1,578 1,503 1,434 1,495 1,529 1,476 1,426 2,993 2,929 6,010 5,891 Income taxes ,741 1,699 Net income 1,316 1,546 1,246 1,284 1,241 1,231 1,227 1,239 1,191 2,862 2,472 5,002 4,877 Total revenue by business Personal Financial Services 1,966 2,015 1,997 1,973 1,908 1,932 1,956 1,949 1,843 3,981 3,840 7,810 7,634 Business Financial Services ,632 1,565 3,190 3,091 Cards and Payment Solutions ,675 1,397 2,833 2,654 Total 3,510 3,778 3,532 3,499 3,380 3,422 3,409 3,390 3,244 7,288 6,802 13,833 13,379 Financial ratios Return on equity (ROE) % 37.8 % 32.5 % 33.4 % 32.9 % 31.8 % 35.2 % 36.5 % 37.1 % 35.4 % 32.3 % 32.6 % 36.4 % Net interest margin (average earning assets) 2.62 % 2.61 % 2.63 % 2.63 % 2.64 % 2.62 % 2.65 % 2.66 % 2.64 % 2.61 % 2.63 % 2.63 % 2.66 % Efficiency ratio 42.1 % 40.1 % 44.7 % 43.0 % 42.4 % 43.7 % 44.9 % 43.5 % 44.0 % 41.1 % 43.1 % 43.4 % 44.0 % Operating leverage 0.7 % 9.1 % 0.4 % 1.4 % 3.6 % 0.2 % (1.5)% 0.7 % 2.4 % 4.9 % 1.9 % 1.4 % 0.4 % Average balances Total assets 393, , , , , , , , , , , , ,900 Total earning assets 381, , , , , , , , , , , , ,800 Loans and acceptances 388, , , , , , , , , , , , ,500 Residential mortgages 225, , , , , , , , , , , , ,200 Personal 2 80,200 80,300 81,000 81,400 81,300 82,400 83,600 83,700 84,000 80,300 81,900 81,500 84,100 Credit cards 16,400 16,700 16,400 16,100 15,500 15,800 15,500 15,200 14,700 16,600 15,600 16,000 15,100 Small business 3,800 3,800 3,900 3,900 3,900 3,900 4,000 4,000 4,000 3,800 3,900 3,900 4,000 Total retail 326, , , , , , , , , , , , ,400 Wholesale 62,800 60,400 59,000 57,800 56,700 56,000 54,600 54,100 52,800 61,600 56,300 57,400 53,100 Personal deposits 182, , , , , , , , , , , , ,600 Business deposits 140, , , , , , , , , , , , ,600 Attributed capital 16,150 16,000 15,000 15,050 15,150 15,250 13,700 13,300 13,050 16,100 15,200 15,100 13,250 Risk capital 13,300 13,150 12,150 12,150 12,250 12,350 10,800 10,400 10,100 13,250 12,300 12,250 10,350 Credit quality Gross impaired loans / Average net loans and acceptances 0.25 % 0.26 % 0.27 % 0.28 % 0.28 % 0.27 % 0.29 % 0.31 % 0.32 % 0.25 % 0.28 % 0.27 % 0.30 % PCL on impaired loans / Average net loans and acceptances 0.27 % 0.26 % 0.29 % 0.28 % 0.30 % 0.29 % 0.25 % 0.26 % 0.25 % 0.26 % 0.29 % 0.29 % 0.25 % Net write-offs / Average net loans and acceptances 0.26 % 0.25 % 0.27 % 0.27 % 0.28 % 0.26 % 0.26 % 0.25 % 0.25 % 0.26 % 0.27 % 0.27 % 0.25 % Business information Assets under administration 3 249, , , , , , , , , , , , ,700 Other earnings measures Net income 1,316 1,546 1,246 1,284 1,241 1,231 1,227 1,239 1,191 2,862 2,472 5,002 4,877 Add: After-tax effect of amortization of other intangibles Adjusted net income 1,318 1,549 1,248 1,287 1,244 1,234 1,230 1,242 1,194 2,867 2,478 5,013 4,889 Less: Capital charge ,431 1,243 Economic profit , ,152 1,766 3,582 3,646 1 This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-gaap measures section on page As at Q2/17, average personal secured loans was $59.2 billion and average personal unsecured loans was $21.0 billion. The loans are secured by securities, residential real estate, automotive assets and government guarantees. 3 AUA represents period-end spot balances and includes securitized residential mortgages and credit card loans as at April 30, 2017 of $18.9 billion and $9.8 billion, respectively (January 31, $18.7 billion and $8.4 billion; April 30, $19.8 billion and $9.9 billion). 4 This is a non-gaap measure. For further information, refer to the Key performance and non-gaap measures section on page

12 WEALTH MANAGEMENT Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except percentage amounts) 6 months 6 months Income Statement Net interest income , , Fee-based revenue 1,371 1,351 1,331 1,276 1,232 1,270 1,188 1,200 1,166 2,722 2,502 5,109 4,699 Transactional and other revenue ,702 1,557 U.S. Wealth accumulation plan gains/(losses) (10) (57) (12) (3) Total revenue 2,427 2,431 2,287 2,235 2,180 2,087 1,653 1,708 1,748 4,858 4,267 8,789 6,775 Provision for credit losses (PCL) Non-interest expense 1,799 1,814 1,743 1,682 1,628 1,725 1,324 1,291 1,308 3,613 3,353 6,778 5,247 U.S. Wealth accumulation plan (gains)/losses (7) (47) (7) (5) Income taxes Net income ,473 1,041 Total revenue by business Canadian Wealth Management ,374 1,196 2,450 2,308 U.S. Wealth Management (including City National) 1,192 1,170 1,081 1,064 1, ,362 1,978 4,123 2,008 International Wealth Management Global Asset Management ,786 1,820 Total 2,427 2,431 2,287 2,235 2,180 2,087 1,653 1,708 1,748 4,858 4,267 8,789 6,775 Financial ratios Return on equity (ROE) % 12.2% 11.6% 11.4% 11.6% 8.9% 17.0% 18.6% 18.3% 12.3% 10.2% 10.9% 17.4% Net interest margin (average earning assets) 2.99% 2.82% 2.82% 2.87% 2.88% 2.79% 2.46% 2.60% 2.49% 2.90% 2.84% 2.84% 2.50% Pre-tax margin 23.7% 23.2% 23.1% 22.6% 23.1% 19.4% 20.3% 23.8% 21.5% 23.4% 21.3% 22.1% 21.2% Average balances Total assets 89,000 90,100 87,900 83,000 80,000 81,700 28,200 29,800 29,700 89,600 80,800 83,200 29,100 Total earning assets 74,800 76,200 73,800 68,800 65,700 66,900 19,000 19,700 20,100 75,500 66,300 68,800 19,700 Loans and acceptances 52,000 50,800 50,200 49,100 47,900 49,500 17,300 17,700 17,900 51,400 48,700 49,200 17,700 Retail loans 21,700 21,300 20,900 20,400 20,000 21,000 10,400 10,200 10,500 21,500 20,500 20,600 10,300 Wholesale loans 30,300 29,500 29,300 28,700 27,900 28,500 6,900 7,500 7,400 29,900 28,200 28,600 7,400 Deposits 94,800 95,100 91,300 85,200 82,200 83,100 37,300 40,500 40,600 95,000 82,600 85,400 39,500 Attributed capital 13,700 13,400 13,000 12,900 13,000 13,000 5,850 5,950 5,950 13,550 13,000 12,950 5,900 Risk capital 5,950 5,700 5,150 4,900 4,850 4,450 1,700 1,800 1,900 5,850 4,650 4,850 1,800 Credit quality Gross impaired loans / Average net loans and acceptances 1.36% 1.20% 1.41% 1.44% 1.54% 1.69% 1.03% 0.73% 0.51% 1.37% 1.51% 1.44% 1.01% Gross impaired loans - acquired credit impaired loans / Average net loans and acceptances 0.64% 0.68% 0.83% 1.03% 1.11% 1.29% % 1.09% 0.85% - PCL on impaired loans / Average net loans and acceptances 0.12% 0.10% 0.17% 0.11% 0.06% 0.04% 0.02% 0.01% 0.73% 0.11% 0.05% 0.10% 0.26% Net write-offs / Average net loans and acceptances 0.01% 0.04% 0.07% 0.00% (0.01)% 0.00% 0.14% 0.00% 0.25% 0.03% 0.00% 0.02% 0.10% Business information Assets under administration Canadian Wealth Management 349, , , , , , , , , , , , ,400 U.S. Wealth Management (including City National) 3 427, , , , , , , , , , , , ,800 International Wealth Management 154, , , , , , , , , , , , ,500 Total 931, , , , , , , , , , , , ,700 Assets under management Canadian Wealth Management 84,200 79,500 76,000 71,500 67,200 66,200 62,800 62,700 60,000 84,200 67,200 76,000 62,800 U.S. Wealth Management (including City National) 113, , , ,100 91,000 96,500 37,400 37,000 33, ,100 91, ,000 37,400 International Wealth Management 9,600 8,900 9,100 9,500 9,200 10,300 10,900 15,800 17,300 9,600 9,200 9,100 10,900 Global Asset Management 4 401, , , , , , , , , , , , ,700 Total 608, , , , , , , , , , , , ,800 Other earnings measures Net income ,473 1,041 Non-controlling interests (1) (1) Add: After-tax effect of amortization of other intangibles Adjusted net income ,656 1,116 Less: Capital charge , Economic profit (Millions of U.S. dollars) U.S. Wealth Management (including City National) Revenue ,769 1,483 3,118 1,603 Assets under administration 3 312, , , , , , , , , , , , ,900 1 Gains (losses) on investments in mutual funds used as economic hedges are included in revenue and related variability is included in market-linked compensation expense in our U.S. Wealth Accumulation Plan. 2 This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-gaap measures section on page Amounts have been revised from those previously presented. 4 Excludes assets held by clients of Phillips, Hager & North Investment Management Ltd. for which we earn either a nominal or no management fee. In Q2/17, $nil balances of these assets were excluded. 5 Q2/15 includes $4 million related to the impairment of other intangibles. 6 This is a non-gaap measure. For further information, refer to the Key performance and non-gaap measures section on page

13 INSURANCE Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except percentage amounts) 6 months 6 months Income Statement Net earned premiums ,628 1,713 3,175 3,507 Investment income (353) (51) (343) 52 (164) , Fee income Total revenue 1, ,818 1,351 1, , ,945 2,510 5,151 4,436 Insurance policyholder benefits, claims and acquisition expense (PBCAE) 1, , ,273 1,817 3,424 2,963 Provision for credit losses (PCL) Non-interest expense Income taxes Net income Total revenue by business Canadian Insurance , ,641 3,373 2,725 International Insurance ,778 1,711 Total 1, ,818 1,351 1, , ,945 2,510 5,151 4,436 Financial ratios Return on equity (ROE) % 33.7% 54.3% 75.7% 44.3% 32.4% 53.4% 43.6% 33.0% 37.6% 38.3% 52.8% 44.3% Average balances Total assets 13,900 14,000 14,200 14,500 14,500 14,400 14,000 13,800 13,800 14,000 14,400 14,400 13,700 Attributed capital 1,600 1,550 1,650 1,900 1,600 1,600 1,650 1,550 1,500 1,600 1,600 1,700 1,600 Risk capital 1,450 1,400 1,500 1,750 1,450 1,450 1,500 1,400 1,350 1,450 1,450 1,550 1,450 Additional information Premiums and deposits 1,4 1,008 1,003 1,065 1,131 1,184 1,214 1,309 1,252 1,217 2,011 2,398 4,594 5,016 Canadian Insurance ,320 2,424 2,725 International Insurance ,027 1,078 2,170 2,291 Fair value changes on investments backing policyholder liabilities (481) (172) (462) (37) (300) (112) (24) PBCAE Insurance policyholder benefits and claims 1, , ,151 1,701 3,208 2,741 Insurance policyholder acquisition expense Insurance claims and policy benefit liabilities 9,262 8,785 9,164 9,305 8,644 8,319 9,110 9,395 9,373 9,262 8,644 9,164 9,110 Embedded value 6,820 6,761 6,886 6,757 6,894 6,865 6,952 6,927 6,823 6,820 6,894 6,886 6,952 Business information Assets under management 1,100 1,000 1, , , Other earnings measures Net income Non-controlling interests Add: After-tax effect of amortization of other intangibles Adjusted net income Less: Capital charge Economic profit Premiums and deposits equals net earned premiums excluding the cost of premiums to other institutions for reinsurance coverage, plus segregated fund deposits. 2 Investment income can experience volatility arising from fluctuation in the fair value through profit or loss (FVTPL) assets. The investments which support actuarial liabilities are predominantly fixed income assets designated as at FVTPL and consequently changes in fair values of these assets are recorded in Insurance premiums, investment and fee income in the consolidated statements of income. Changes in fair values of these assets are largely offset by changes in the fair value of the actuarial liabilities, the impact of which is reflected in insurance policyholder benefits and claims. 3 This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-gaap measures section on page Premiums and deposits include premiums on risk-based insurance and annuity products, and individual and group segregated fund deposits, consistent with insurance industry practices. 5 The revenue impact of the change in fair value on investments backing policyholder liabilities is reflected in Insurance premiums, investment and fee income and largely offset in PBCAE. 6 This is a non-gaap measure. For further information, refer to the Key performance and non-gaap measures section on page

14 INVESTOR & TREASURY SERVICES Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except percentage amounts) 6 months 6 months Income Statement Net interest income Non-interest income ,446 1,220 Total revenue ,239 1,090 2,271 2,038 Provision for credit losses (PCL) - - (3) (3) (1) Non-interest expense ,460 1,301 Income taxes Net income Financial ratios Return on equity (ROE) % 25.1% 21.0% 18.2% 16.5% 15.9% 10.9% 24.5% 24.2% 24.9% 16.2% 17.9% 20.3% Average balances Total assets 133, , , , , , , , , , , , ,300 Trading securities 38,000 43,100 46,400 46,400 47,100 51,500 52,000 47,800 49,000 40,600 49,300 47,800 48,800 Loans and acceptances 2,000 1,900 1,700 1,800 1,700 1,800 1,800 1,900 1,900 2,000 1,700 1,700 1,900 Deposits 127, , , , , , , , , , , , ,600 Client deposits 52,900 52,500 50,900 53,000 53,900 53,600 56,500 52,000 48,800 52,700 53,700 52,800 50,400 Wholesale funding deposits 75,000 76,000 73,500 70,200 84,200 98,100 93,000 92,200 87,400 75,500 91,300 81,500 89,200 Attributed capital 3,150 3,300 3,200 3,350 3,350 3,450 3,100 2,650 2,650 3,250 3,400 3,350 2,700 Risk capital 2,650 2,850 2,750 2,850 2,850 2,950 2,600 2,150 2,150 2,750 2,900 2,850 2,200 Business information Assets under administration 4,111,400 3,797,000 3,929,400 3,724,300 3,617,700 3,807,300 3,620,300 3,990,900 3,846,900 4,111,400 3,617,700 3,929,400 3,620,300 Other earnings measures Net income (loss) Non-controlling interests (1) - - (1) (1) (1) - (1) (1) Add: After-tax effect of amortization of other intangibles and goodwill impairment Adjusted net income Less: Capital charge Economic profit (loss) In Q3/15, the reporting period for Investor Services was aligned to that of RBC, which resulted in an additional month of earnings. The net impact of the additional month was recorded in revenue ($42 million before-tax, $28 million after-tax). 2 This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-gaap measures section on page This is a non-gaap measure. For further information, refer to the Key performance and non-gaap measures section on page

15 CAPITAL MARKETS Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Q4/15 Q3/15 Q2/ (Millions of Canadian dollars, except percentage amounts) 6 months 6 months Income Statement Net interest income (teb) ,062 1,098 1, ,869 2,055 3,804 3,970 Non-interest income (teb) 1 1,195 1,124 1,036 1, ,030 1,307 2,319 1,915 4,146 4,093 Total revenue (teb) 2,117 2,071 1,893 2,087 1,990 1,980 1,737 2,046 2,247 4,188 3,970 7,950 8,063 Provision for credit losses (PCL) Non-interest expense 1,173 1,125 1,151 1,160 1,080 1,075 1,072 1,187 1,280 2,298 2,155 4,466 4,696 Income taxes Net income ,330 1,153 2,270 2,319 Total revenue by business Corporate and Investment Banking 1, , ,956 1,762 3,694 3,697 Global Markets 1,162 1, ,148 1,125 1, ,070 1,323 2,356 2,235 4,361 4,477 Other (65) (59) (61) (17) (27) - (45) (30) (34) (124) (27) (105) (111) Total 2,117 2,071 1,893 2,087 1,990 1,980 1,737 2,046 2,247 4,188 3,970 7,950 8,063 Financial ratios Return on equity (ROE) % 13.3 % 10.4 % 14.2 % 12.1 % 12.3 % 12.3 % 12.9 % 14.9 % 13.7 % 12.2 % 12.2 % 13.6 % Total compensation to revenue % 35.6 % 36.1 % 34.6 % 34.3 % 34.9 % 33.3 % 36.9 % 38.5 % 35.2 % 34.6 % 34.9 % 37.2 % Average balances Total assets 499, , , , , , , , , , , , ,300 Trading securities 95,000 98, , , , , , , ,800 96, , , ,200 Loans and acceptances 83,600 83,800 85,500 87,400 89,600 89,700 85,900 81,300 77,700 83,700 89,700 88,100 79,700 Deposits 59,900 58,700 59,200 61,600 62,200 63,100 63,200 62,700 60,000 59,300 62,600 61,500 60,300 Attributed capital 18,700 19,100 17,600 17,200 18,850 17,900 17,350 16,300 16,750 18,900 18,400 17,900 16,550 Risk capital 17,650 18,000 16,500 16,100 17,800 16,800 16,250 15,250 15,750 17,800 17,300 16,800 15,500 Credit quality Gross impaired loans / Average net loans and acceptances 1.18 % 1.66 % 1.78 % 1.53 % 1.38 % 0.52 % 0.34 % 0.40 % 0.19 % 1.18 % 1.38 % 1.73 % 0.37 % PCL on impaired loans / Average net loans and acceptances 0.12 % 0.15 % 0.24 % 0.15 % 0.56 % 0.53 % 0.17 % 0.07 % 0.08 % 0.13 % 0.54 % 0.37 % 0.09 % Net write-offs / Average net loans and acceptances 0.12 % (0.08)% 0.01 % 0.50 % 0.00 % 0.16 % 0.12 % (0.01)% 0.02 % 0.02 % 0.08 % 0.17 % 0.03 % Business information Assets under administration 13,800 13,600 14,600 13,900 13,400 16,100 15,600 15,700 14,000 13,800 13,400 14,600 15,600 Other earnings measures Net income ,330 1,153 2,270 2,319 Non-controlling interests Add: After-tax effect of amortization of other intangibles - - (1) (1) Adjusted net income ,330 1,153 2,270 2,319 Less: Capital charge ,694 1,550 Economic profit (loss) Non-interest income is adjusted for teb commencing Q2/16. 2 This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-gaap measures section on page Total compensation to revenue ratio is calculated as total human resources non-interest expense / total revenue (teb) for Front Office personnel and for functional support teams (Technology, Operations, and Functions). Total human resources non-interest expense includes salary, benefits, stock based compensation, severance, retention costs, and variable compensation. 4 This is a non-gaap measure. For further information, refer to the Key performance and non-gaap measures section on page